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Agility Grows as a Priority among Corporate Real Estate Executives

Study of Global Occupiers Conducted by CoreNet Global and CBRE

ATLANTA — The concept of creating agility, the ability to scale up and scale down, and to relocate quickly and easily, is growing in urgency as a priority among corporate real estate executives according to a survey of their leading strategies and focus areas.

"For the second year of this survey, we are seeing a continued trend across industries and geographies where real estate executives are seeking greater operational flexibility as a top strategy to add value across their real estate portfolios," said Julie Whelan, Head of Occupier Research with CBRE.

Accordingly, respondents shared the percentage who will either use or intend to use shared workspaces will increase to 45 percent by 2020, up 15 points from today. Cost, flexibility in lease terms, and the need for short-term space were the leading decision drivers cited for engaging in this space model.

That said, "today's top occupiers are pursuing increased agility through a multitude of avenues" said Matt Toner, Leader of CBRE Institute and co-lead with Julie Whelan on a forthcoming study by CBRE and CoreNet Global exploring this issue. Their team is seeking to further define trends in occupiers' use of organizational, portfolio, process, financial, and digital agility initiatives – and will have results published by year-end.

"The shared workspace is exciting and one of the most transformative movements we are seeing in corporate real estate today," said Tim Venable, senior vice president with CoreNet Global. "The term shared workspace may refer to serviced/furnished offices, an innovation center, co-working space, or a business incubator. In any iteration, we believe this concept has great potential to change the look and the feel of the workplace over the next 3-5 years."

Globally, corporations are listening to the desires of the workforce as they work to compete for top talent. In the Americas, 64 percent cited amenities as a top workforce request. In response, 86 percent of companies are reinventing their workplace standards in pursuit of rising employee satisfaction levels. In Europe, employees are focused on attaining greater comfort through indoor environmental quality, and companies there are leading the pursuit of WELL-certified buildings. And in Asia, where employees desire connectivity and collaboration above all, organizations are focused on rolling out true activity-based work environments. Overall, wellness is a fast-growing trend with increased worker engagement leading the charge.

The CoreNet Global/CBRE survey was conducted in late 2016 and yielded more than 350 responses across a wide range of industries and all global regions. Deeper analysis is available in CBRE's regional and Global Occupier Survey reports, which draw upon the findings of this survey.

About CoreNet Global CoreNet Global is the world's leading professional association for corporate real estate (CRE) and workplace executives, service providers and economic developers. CoreNet Global's 10,000 members, who include 70 percent of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally. For more information, please visit www.corenetglobal.org.